Trade Unchained

Published from Blogger Prime Android AppPhiri says Zambia and Malawi is Freeing agricultural trade from costly and repetitive inspections.

By Francis Maingaila

Lusaka, Zambia24 – (11-08-2025) - Zambia and Malawi have signed a Sanitary and Phytosanitary Mutual Recognition Agreement (MRA) designed to dismantle agricultural trade barriers, harmonize regulatory standards, and expand market access between the two nations.

Facilitated by the Common Market for Eastern and Southern Africa (COMESA), the agreement commits both countries to mutually accept each other’s inspection and certification protocols for plant products. This framework is expected to reduce redundant procedures, lower trade costs, and minimize delays at border crossings.

Agriculture Minister Reuben Mtolo Phiri described the pact as a “significant milestone” for regional integration with strong potential to accelerate agricultural exports and stimulate economic growth.
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He emphasized that the objective is to facilitate smoother trade by eliminating obstacles rather than creating new ones, while promoting dialogue to address ineffective policies.

“This agreement embodies trust, collaboration, and smart regulation,” Phiri remarked. 

“If we simplify trade, we empower our farmers, bolster our economies, and lay a foundation for the future.”

Phiri underscored Africa’s urgent food security challenges, noting the continent’s population is projected to reach 2.2 billion by 2050, with food demand expected to triple accordingly.

He stressed that harmonized sanitary and phytosanitary measures will safeguard plant health without impeding the free movement of agricultural goods across borders.

The MRA offers critical benefits, including easier market access for farmers and traders, fewer technical barriers, and protection against the spread of pests and diseases.
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By formalizing informal cross-border trade, the agreement will enhance the accuracy of export statistics and establish a more predictable legal environment for traders.

Phiri commended the technical working groups from both Zambia and Malawi for their contributions to drafting the agreement, urging vigilance to ensure the document remains a facilitator of trade—not a source of new obstacles.

He also confirmed that Zambia is in the final stages of negotiating similar agreements with Zimbabwe and other regional partners.

“This is a victory for regional trade and for our farmers,” he stated. 

“It will help us meet future food demand through stronger, more open markets.”

At the same signing ceremony in Lusaka, Malawi’s Minister of Agriculture Vitumbiko Mumba highlighted that the agreement will eliminate costly and time-consuming duplicate inspections, testing, and certifications for goods crossing between the two countries.
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“Experience shows that products often undergo repeated conformity assessments—even after being inspected and certified in their country of origin. This redundancy increases costs and diminishes the competitiveness of especially small and medium enterprises,” Mumba explained.

Supported by the Alliance for a Green Revolution in Africa (AGRA), the UK’s Foreign, Commonwealth and Development Office (FCDO), the Bill & Melinda Gates Foundation, and other partners, the MRA is part of a broader regional pilot initiative involving six COMESA member states.

The agreement covers vital crops such as sorghum, beans, soybeans, rice, and groundnuts.

Mumba noted that the MRA ensures that inspection and certification performed in one country will be recognized by the other, fostering trust between national quality institutions and strengthening regional integration.

He emphasized that the signing marks “the beginning of an implementation journey,” urging both Malawi and Zambia to devise effective strategies for sustainability beyond donor funding and to actively engage the private sector.

The Malawi–Zambia MRA is one of four agreements ready for signature under this project, with others involving Zimbabwe, Kenya, and Uganda.

Mumba praised COMESA for pioneering trade facilitation tools like the Yellow Card Scheme, Simplified Trade Regime, and One Stop Border Post system. 

He hailed the MRA as “another proud COMESA product” that will open markets and drive economic growth.

“I thank the governments of Malawi and Zambia for their political and technical commitment to this process, as well as our development partners for their invaluable support. May this milestone serve as a model for other COMESA member states,” he said.

The agreement aligns with the goals of the African Continental Free Trade Area (AfCFTA), which seeks to harmonize trade systems, dismantle barriers, and boost competitiveness continent-wide.

Similarly, Mohamed Kadah, Assistant Secretary General for Programmes at COMESA, highlighted the challenges regional traders face due to duplicative conformity assessments that inflate costs and restrict trade.

“To address these challenges, COMESA, supported by AGRA, the UK FCDO, the Bill & Melinda Gates Foundation, and others, developed this agreement to cultivate trust and cooperation in standards and quality assurance across member states,” Kadah explained.

The Malawi–Zambia MRA forms part of a pilot project with six COMESA member states focused on six key agricultural commodities: sorghum, beans, soybeans, rice, groundnuts, and maize. The initiative seeks to streamline trade by mutually recognizing conformity assessments.

Kadah stressed that the signing is a significant achievement but only the start of a broader implementation phase.

“The benefits will only be realized through effective and sustainable national-level implementation,” he said, urging the finalization of inclusive implementation plans and stronger private sector collaboration.

COMESA has previously led regional trade facilitation initiatives—including the Yellow Card Scheme, Simplified Trade Regime, and customs transit guarantees—that have contributed to integration. The MRA adds to this suite of tools aimed at enhancing trade and economic development.

The agreement received strong political and technical backing from the Ministries of Trade in Malawi and Zambia, with both governments committed to advancing the process.

Development partners including AGRA and FCDO pledged continued support to extend the initiative to other member states.

“This milestone sets a positive example for other COMESA countries and reflects our shared commitment to regional integration and growth,” Kadah suggested.

The Malawi–Zambia MRA signals a new chapter in regional cooperation, aimed at reducing non-tariff barriers and improving the ease of doing business across Eastern and Southern Africa.

Additionally, British High Commissioner to Zambia, Rebecca Terzeon, voiced strong support for the initiative, calling it a critical step toward deeper regional economic integration. She congratulated both governments, COMESA, and AGRA for their collaborative achievement.

“This MRA represents a powerful commitment to facilitating trade, strengthening food security, and creating economic opportunities for smallholder farmers, youth, and women,” Terzeon said.

“It will lower trade costs and open new markets, directly benefiting marginalized communities.”

Intra-Africa trade remains relatively low at just under 18%, compared to other continents. With food demand projected to triple by 2050, the MRA aims to unlock Africa’s untapped potential by enabling smoother movement of goods across borders.

By eliminating duplicate conformity assessments—such as inspections, testing, and certification—that often delay trade and increase costs, the agreement will foster faster, more cost-efficient agricultural trade between the two countries. It sets a precedent for other COMESA members to emulate.

The MRA is part of a broader £35 million UK-supported Africa Foods Trade and Resilience program, implemented by AGRA over the past six years.

The UK government has invested over £1 million specifically in MRA-related activities, reflecting its commitment to sustainable trade development in the region.

The UK also supports complementary initiatives, including digital trade systems, regulatory reforms, green corridors, and border infrastructure improvements.

Programs such as the COMESA Regional Food Balance Sheet, East Africa Horticultural Accelerator, and Zambia’s Food Corridor Initiative exemplify efforts to strengthen regional food trade.

At the recent Invest Zambia Conference in Lusaka, the UK unveiled its Developing Countries Trading Scheme (DCTS), which simplifies rules of origin to help countries like Malawi and Zambia access the UK market tariff-free. This scheme further enhances the role of MRAs in linking African economies to global markets.

With Africa’s population projected to reach 2.2 billion by 2050—representing one in five global consumers—initiatives like the Malawi-Zambia MRA are vital to constructing an integrated, resilient, and sustainable food economy.

Dr. Daniel Njiwa, Director of Inclusive Market Trade and Finance at AGRA, expressed profound appreciation for the efforts leading to this landmark achievement in agricultural trade between Malawi and Zambia.

He recognized the leadership and commitment of ministers involved—Honorable Vitumbiko Mumba from Malawi, and Ministers Reuben Mtolo Phiri and Unabong from Zambia—emphasizing that this MRA is likely the first of its kind in African agriculture.

Dr. Njiwa also thanked key partners, notably Her Excellency Rebecca Terzo from the UK, along with the UK government, Mastercard Foundation, Bill & Melinda Gates Foundation, and Rockefeller Foundation, whose support has been instrumental.

AGRA has been pioneering this program for seven years, initially engaging six countries—including Zimbabwe, Kenya, Uganda, and Rwanda—that have yet to reach this stage.

He congratulated Malawi and Zambia for advancing this initiative and commended the COMESA Secretariat, especially Ambassador Mohamed Kada and his team, for their collaboration with AGRA and governments.

Highlighting the importance of private sector involvement, Dr. Njiwa applauded the ministers and their teams for engaging businesses throughout the process, which has spanned at least five years.

He noted that Malawi and Zambia are establishing a precedent that will encourage other countries to sign similar frameworks with active private sector participation, creating a “plug and play” model for regional agricultural trade.

Looking forward, Dr. Njiwa emphasized that signing the agreement is merely the start.

The real challenge lies in sustained leadership commitment, investment in the sector, capacity building, and provision of adequate infrastructure and equipment to government teams.

Ongoing engagement with the private sector remains critical, given the daily challenges traders face in cross-border commerce.

He referenced insights from Devi Haman, Assistant Secretary General for Administration and Finance at COMESA, noting that agricultural trade remains stagnant at under 20% in the formal sector, with a substantial portion occurring informally.

Many traders avoid formal routes due to regulatory burdens and bureaucratic delays, which increase costs and prolong trade times.

By implementing trade facilitation mechanisms like this MRA, more traders will be encouraged to formalize their operations, benefiting farmers with improved market access and incentives downstream.

Dr. Njiwa reaffirmed AGRA’s commitment to collaborating with COMESA and national governments to deliver on this transformative agenda within their lifetime.

Earlier, Devi Haman stated that the agreement addresses the longstanding challenge of low intra-COMESA trade, currently valued at about $14 billion—a small fraction of the region’s roughly $500 billion external trade.

“The potential for growth in intra-regional trade is enormous,” Haman said.

“Our goal is to raise this figure to at least $100 billion, representing about 20 percent of the region’s total trade volume. The Mutual Recognition Agreement is a critical step toward that vision.”

Haman noted that six countries—Kenya, Malawi, Rwanda, Uganda, Zambia, and Zimbabwe—have been selected on a pilot basis to implement the MRA with support from AGRA.

He highlighted remarks by the President of Zambia, who assumed the COMESA chairmanship in June 2023, underscoring the vision of transforming the region into a “borderless nation” to facilitate faster goods movement.

“This signing signals a new era in trade procedures between Malawi and Zambia and reflects progress toward a borderless COMESA community,” Haman said.

He also acknowledged the crucial role of women in business as key drivers of economic growth, praising the COMESA Federation of Women in Business, currently hosted by Malawi, for empowering women entrepreneurs who have grown enterprises employing hundreds.

“Supporting small and medium enterprises and empowering women entrepreneurs is essential to tackling unemployment and promoting sustainable development,” he concluded.

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